Smart Grid @ RPU · Smart Grid Future • Due to advantages in cost and features, RPU should plan...

Smart Grid @ RPU

Burns & McDonnell

2

Issues for Tonight’s Discussion

• Recap Smart Grid overview-RPU status

• Results of analysis

– Recommendations

• Path forward

Open dialogue approach

Ask questions as we go!

3

No Smart Grid Full Smart Grid

CUSTOMER SERVICE

RP

U


CUSTOMER ACCESS TO INFORMATION & CHOICE

RP

U


LOAD MANAGEMENT

RP

U


DISTRIBUTION AUTOMATION

RP

U


RELIABILITY

RP

U


ASSET MANAGEMENT

RP

U


ENTERPRISE

RP

U

RPU already is on the Smart Grid path.

How far (and how fast) do you

go to Full Smart Grid?

4

RPU has “Areas of Control” in Smart Grid

xxxxx

Smart Distribution

Smart CustomerSmart Generation &

TransmissionBilling

Information

RPU involved in SG

here through

SMMPA/MISO

initiatives.

RPU controls this space

entirely:

-Remote feeder switching

-Remote monitoring of

substation equipment-Feeder power quality

-Fault identification

-Outage monitoring

-System Loading

-Remote connect/disconnect

RPU works with

customers for

acceptance “beyond the

meter”:

-Variable pricing-hourly consumption/bill

updates

-Load management at

appliance level

-Distributed Generation/Micro Grids

Buy

Sell

5

“Areas of Control” have different Products and Technologies

xxxxx

Smart Distribution


TransmissionBilling

Information

Buy

Sell

Products and

Technologies are

Aimed at Utility

industry

-Computer Relays

-Distribution

Automation

-Outage Management

Systems

-Asset Management

-Meter Data

Management

Products and

Technologies are

Aimed at Utility

-Advanced Meters

and assoc. comm.

And consumers-

-Home Area Networks

-In home displays

-Appliances

-Computer Applications

Products and

Technologies are

Aimed at Utility

industry

-Phasor Measure

Units

-Control Center

Energy Management

Systems

6

Existing System Status

Fiber optic communications 4 out of 10 substations connected

Advanced SCADA system 21 RTUs and 53 PLCsSEL 2030 Gateways at substations

Capacitor bank controls 8 advanced capacitor banks50% of distribution capacitor banks with controllers

Transmission relays 100% fault locating end of 2010

Distribution Relays 100% fault locating end of 2011

Telvent Outage Management System

Advanced system with many more capabilities and connectivity than RPU is currently using

RPU has a Relatively Advanced System

7

RPU’s Reliability is Already High…

Measurement RPU Industry Ave.

Ave # of outages 0.49/customer/yr 1.10 /customer/yr

Duration of outage 33.59 minutes 90 minutes

Ave Restoration time 69.01 minutes 81.6 minutes

8

“Areas of Control” have different Products and Technologies

xxxxx

Smart Distribution


TransmissionBilling

Information

Buy

Sell

Products and

Technologies are

Aimed at Utility

industry

-Computer Relays

-Distribution

Automation

-Outage Management

Systems

-Asset Management

-Meter Data

Management

Products and

Technologies are

Aimed at Utility

-Advanced Meters

and assoc. comm.

And consumers-

-Home Area Networks

-In home displays

-Appliances

-Computer Applications

Products and

Technologies are

Aimed at Utility

industry

-Phasor Measure

Units

-Control Center

Energy Management

Systems

9

New Products &Technologies Blur Smart Grid Utility/Customer Line

Ultimate Smart Grid Customer Level Functionality

1) Real-time Information on Usage and Cost

2) Automated Control of Appliances

3) Customer Empowerment to affect consumption

CUSTOMER

Smart Appliances

Home Energy Displays

CUSTOMER/UTILITY INTERFACE

Smart Meters/AMI

Direct Load Control

Demand Response

UTILITY

Distribution Automation

Enterprise Data

Systems (MDMS)

10

RPU has Installed an Automatic Meter Reading System…

Smart Meter Capabilities Current Meter Capability?

Add on Capability?

Customer FeaturesInterval reads (hour or less)

Some Locations Yes

Remote on-demand reads No Yes

Real-time information to the home (ZigBee)

No No

On Line ePortal for customers No Yes

Distribution Features

Power outage notification No Yes

Power quality monitoring No No

Remote connect/disconnect No Yes

Smart Meter Capabilities require two way

communication system between RPU and

meter.

11

Two Approaches Essentially Same for Customer, not RPU…

• Data shared with 3rd parties

• Internet Security

• More difficult for RPU to get interval usage

• More devices for same functions as Smart Meter

• Customer controlled, can be supported now by RPU

• Communications via internet

• Not as prone to tech obsolescence with “all eggs in one basket”

• No straightforward approach to sharing data across RPU

• FYI, No billing quality information

• Data controlled by customer and RPU

• RPU Security responsibility

• Easy to get interval data

• Use of AMR requires “add ons”

• RPU controlled so customer must coordinate with RPU

• RPU communications

• Meter technology by vendor

• Replacement with Smart Meters could be done over time, targeted points

• Easier approach to sharing data across RPU

• Provides billing

data

12

Dynamic Pricing-The Goal(continued)

0

20

40

60

80

100

120

140

160

180

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hours

$/M

Wh

0

5

10

15

20

25

30

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

kW

Variable Costs

Variable costs will affect usage…

Add Renewable

Generation?

13

So, There are a number of options, considerations and approaches to Smart Grid

How do we get any focus on these issues?

Key issue of Smart Grid for RPU is about use of

Advanced Meter Infrastructure

Customer Space

-Time varying rates

-Real time usage

-Smart Building Controls

-Ancillary services

RPU Space

-Remote connect/disc

-Power quality info

-Outage information

-Real time usage

-Ancillary services

14

Time of use rate issue is major factor in deployment of AMI

-Mandatory

-Voluntary

This question drives..

1. Whether to deploy technology

across full system or for only

customers who want TOU.

2. How readily RPU can leverage

technology in customer space

for Smart Grid Dist Automation

objectives

3. How many rate structures

RPU maintains

4. How to recover costs

(ratebase or per adopter)

One fundamental question:

Does RPU move to

Mandatory Time of Use

rates for all customers?

15

Decisions on TOU and Tech issues

Customer

TOU

participation?

Who will pay?RPU invests in full

system deployment

resulting in highest

rate increase

Mandatory Voluntary

RPU invests in

meter technology

resulting in higher

participation and

additional benefits

to RPU but

requires energy

rate increase

RPU & customers

share the cost of

meter technology

resulting in lower

participation and

additional benefits

and requires less

energy rate

increase

RPU promotes and

installs meter

technology that

customers and

RPU gain usage

information from

RPU promotes and

advises customers

in the acquisition of

technologies

“behind the meter”

that customers

gain usage

information from

RPU Share

RPU tech. or

Customer

tech.?

Customer

RPU Customer

Customer

TOU

participation?


system deployment


rate increase

Mandatory Voluntary

RPU invests in

meter technology

resulting in higher

participation and

additional benefits

to RPU but

requires energy

rate increase

RPU & customers

share the cost of

meter technology

resulting in lower

participation and

additional benefits

and requires less

energy rate

increase

RPU promotes and

installs meter

technology that

customers and

RPU gain usage

information from

RPU promotes and

advises customers


technologies


that customers

gain usage

information from

RPU Share

RPU tech. or

Customer

tech.?

Customer

RPU Customer

16

Support in the voluntary approach

Customer

TOU

participation?


system deployment


rate increase

Mandatory Voluntary

RPU invests in

meter technology

resulting in higher

participation and

additional benefits

to RPU but

requires energy

rate increase

RPU & customers

share the cost of

meter technology

resulting in lower

participation and

additional benefits

and requires less

energy rate

increase

RPU promotes and

installs meter

technology that

customers and

RPU gain usage

information from

RPU promotes and

advises customers


technologies


that customers

gain usage

information from

RPU Share

RPU tech. or

Customer

tech.?

Customer

RPU Customer

Customer

TOU

participation?


system deployment


rate increase

Mandatory Voluntary

RPU invests in

meter technology

resulting in higher

participation and

additional benefits

to RPU but

requires energy

rate increase

RPU & customers

share the cost of

meter technology

resulting in lower

participation and

additional benefits

and requires less

energy rate

increase

RPU promotes and

installs meter

technology that

customers and

RPU gain usage

information from

RPU promotes and

advises customers


technologies


that customers

gain usage

information from

RPU Share

RPU tech. or

Customer

tech.?

Customer

RPU Customer

17

Business Case developed using the following premises…

First: Due to advantages it brings,

AMI would be deployed.

-RPU space

-Customer spaceMandatory use of AMI removes

question of whether to use

Internet or customer based approach

Second: RPU will determine approach

to mandatory versus voluntary TOU rates.

-Business Plan reviewed both

-Main difference is pace of AMI deployment

18

Business Case Includes:

• Discussion of Smart Grid

– Different perspectives of Customer, RPU and Regulators

• GAP analysis of what infrastructure is currently in place and what is needed

• Discussion of mandatory versus voluntary approaches

• Benefit cost analysis

– Spreadsheet tool that allows RPU to refine assumptions and rerun assessment

• Recommendations and Implementation Plan

19

RPU Direct Benefits

$(20)

$(15)

$(10)

$(5)

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$5

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Cu

mu

lati

ve

Ne

t C

ost

/Be

ne

fit

(Mil

lio

ns)

RPU Smart Grid: Cumulative RPU Direct Net Cost/Benefit

VOLUNTARY RATE / MANDATORY TECHNOLOGY APPROACH

MANDATORY RATE / MANDATORY TECHNOLOGY APPROACH

20

Total Community Benefits

$(20)

$(15)

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$(5)

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Cu

mu

lati

ve N

et

Co

st/B

en

efi

t (M

illio

ns)

RPU Smart Grid: Cumulative RPU & Customer Net Cost/Benefit

VOLUNTARY RATE / MANDATORY TECHNOLOGY APPROACH

MANDATORY RATE / MANDATORY TECHNOLOGY APPROACH

21

Recommendations for RPU Smart Grid Future

• Due to advantages in cost and features, RPU should plan migration to an AMI platform.– New customers– AMR attrition– Statistical dispersion– TOU deployment

• In order to maximize customer benefits with Smart Grid, significant consumer education is needed. – First major activity.– What to do with usage information– What are impacts and how to use dynamic cost information– Manage fears of “intrusion” and personal information– Align expectations with realities of Smart Grid

• Upgrade SCADA and outage management system with regards to Smart Grid goals.

• Plan for increased amounts of data to be processed. Upgrade the CIS with eye towards this data coming and TOU rates being more widely deployed.

22

Possible Time Line

Year 1

•Customer dialog and education about Smart Grid

•RPU decision on mandatory versus voluntary TOU

•Identify and prioritize poorest performing distribution system areas

•Designs for communication system

•Designs for Back office systems upgrades

•Design customer programs (rates, ancillary services, DSM)

Year 2

•Continue consumer education, roll out of programs, devices

•Design TOU rates

•Initiate AMI deployment in strategic locations

•Initiate communication and computer systems upgrades

•Initiate distribution system upgrades at poorest areas

Year 3

•Begin offering TOU rates and other customer programs

•Tie meter data management system to customer and outage systems

•Continue distribution and meter system upgrades

Year 4+

•Evaluate, monitor and refine customer programs

•Continue distribution and meter system upgrades

•Evaluate, monitor, and refine internal RPU data sharing, organization, and processes

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What do you think?

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Where do we go from here?

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Vision for Consideration

Prudently adopt Smart Grid technologies which

provide customer value in reliability or service.

Smart Grid @ RPU · Smart Grid Future • Due to advantages in cost and features, RPU should plan...

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